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CONROE, Texas, July 24, 2019 /PRNewswire/ -- Spirit of Texas Bancshares, Inc. (NASDAQ:STXB) ("Spirit" or the "Company"), the bank holding company for Spirit of Texas Bank, today reported its results as of and for the three months ended June 30, 2019.

Second Quarter 2019 Financial and Operational Highlights

Net income for the second quarter of 2019 increased to $5.8 million, compared to $2.7 million in the second quarter of 2018. Adjusted net income(1) for the second quarter of 2019 was $5.8 million, which excluded $997 thousand of after-tax, merger-related expenses and $1.1 million of gain on sale of investment securities.

Diluted earnings per share were $0.41 for the second quarter of 2019, compared to $0.29 for the second quarter of 2018. Adjusted diluted earnings per share(1) were also $0.41 for the second quarter of 2019, which excluded $997 thousand of after-tax, merger-related expenses and $1.1 million of gain on sale of investment securities.

Return on average assets was 1.26% annualized including $997 thousand of after-tax, merger-related expenses and $1.1 million of gain on sale of investment securities.

At June 30, 2019, book value per share was $17.70 and tangible book value per share(1) was $13.61.

At June 30, 2019, total stockholders' equity to total assets was 12.86% and tangible equity to tangible assets(1) was 10.19%.

Completed the acquisition of First Beeville Financial Corporation and its subsidiary, The First National Bank of Beeville (together, "Beeville"), on April 2, 2019. The combined organization has 29 locations and total assets of $1.9 billion as of June 30, 2019.

Dean Bass, Spirit's Chairman and Chief Executive Officer, stated, "We are proud to have reported record earnings in the second quarter of 2019. Adjusted diluted earnings per share for the quarter were $0.41, up 24% over the comparable sequential first quarter of 2019 and 41% higher than last year's second quarter earnings per share. We are also very pleased to announce that we have signed a definitive agreement to acquire through a series of mergers Chandler Bancorp, Inc. and its subsidiary, Citizens State Bank (together, "Citizens"). This is our tenth acquisition since 2008 and the third acquisition since our May 2018 initial public offering. The transaction is expected to close in the fourth quarter of 2019, subject to the satisfaction of customary closing conditions, including regulatory approvals, and is expected to be accretive to earnings in 2020. For additional details regarding this transaction, please review the news releases disclosed today."

First Beeville Financial Corporation Acquisition

On April 2, 2019, the Company closed its previously announced acquisition of Beeville in a cash and stock transaction (the "Beeville acquisition"). The closing consideration consisted of approximately $32.4 million in cash and 1,579,268 shares of Spirit's common stock. Under the terms of the Agreement and Plan of Reorganization, each outstanding share of Beeville was converted into the right to receive $547.45 in cash and approximately 26.7048 shares of Spirit common stock, plus cash in lieu of any resulting fractional shares. Spirit and Beeville offices and services are expected to be integrated during the third quarter of 2019. The transaction added approximately $465.6 million in total assets, with three branches and two loan production offices in attractive markets.

Loan Portfolio and Composition

During the second quarter of 2019, gross loans grew to $1.41 billion as of June 30, 2019, an increase of 26.3% from $1.12 billion as of March 31, 2019, and an increase of 53.6% from $917.5 million as of June 30, 2018. Loan growth during the quarter was primarily driven by the $296.3 million of loans acquired in the Beeville acquisition.

Asset Quality

The provision for loan losses recorded for the second quarter of 2019 was $332 thousand. The allowance decreased to $6.3 million, or 0.45% of the $1.41 billion in loans outstanding as of June 30, 2019, primarily due to improvements in the assessed credit quality as represented by internal risk ratings. The nonperforming loans to loans held for investment ratio as of June 30, 2019 decreased to 0.40% from 0.52% as of March 31, 2019, and 0.44% at June 30, 2018. Annualized net charge-offs were 18 basis points for the second quarter of 2019.

Deposits and Borrowings

Deposits totaled $1.57 billion as of June 30, 2019, an increase of 30.6% from $1.20 billion as of March 31, 2019, and an increase of 86.0% from $844.7 million as of June 30, 2018. Noninterest-bearing demand deposits increased $109.4 million, or 42.3%, from March 31, 2019, and increased $184.3 million, or 100.4% from June 30, 2018. Noninterest-bearing demand deposits represented 23.4% of total deposits as of June 30, 2019, compared to 21.5% of total deposits as of March 31, 2019, and 21.7% of total deposits as of June 30, 2018. Deposit growth during the quarter was primarily driven by the $399.2 million obtained through the Beeville acquisition. The average cost of deposits was 1.01% for the second quarter of 2019, representing a four basis point decrease from the first quarter of 2019 and a nine basis point increase from the second quarter of 2018.

Net Interest Margin and Net Interest Income

The net interest margin for the second quarter of 2019 was 4.61%, a decrease of four basis points from the first quarter of 2019 and an increase of nine basis points from the second quarter of 2018. The tax equivalent net interest margin for the second quarter of 2019 was 4.64%, a decrease of five basis points from the first quarter of 2019 and an increase of seven basis points from the second quarter of 2018. The decrease from the first quarter of 2019 is due to the timing of selling and buying securities in conjunction with portfolio rebalancing and drawing $21 million on the line of credit with our third-party lender. The increase from the same quarter the prior year was due primarily to the impact of higher interest rates.

Net interest income totaled $19.8 million for the second quarter of 2019, an increase of 78.2% from $11.1 million for the second quarter of 2018. Interest income totaled $24.3 million for the second quarter of 2019, an increase of 80.2% from $13.5 million in the same period in 2018. Interest and fees on loans increased by $9.1 million, or 69.8%, from the second quarter of 2018 due to organic and acquired growth in the loan portfolio and the impact of an increase in interest rates. Interest expense was $4.5 million for the second quarter of 2019, an increase of 89.1% from $2.4 million for the same period in 2018. The increase from the second quarter of 2018 was due to an increase in the rate paid on interest-bearing liabilities of 13 basis points and the growth in the deposit base from the acquisition of Comanche National Corporation and its subsidiary, The Comanche National Bank (the "Comanche acquisition"), which closed on November 14, 2018, and the Beeville acquisition, which closed on April 2, 2019.

Noninterest Income and Noninterest Expense

Noninterest income totaled $3.8 million for the second quarter of 2019, compared to $2.3 million for the second quarter of 2018. The primary components of noninterest income for the second quarter of 2019 were a gain on sales of loans, net, a gain on sales of investment securities, and service charges and fees of $1.4 million, $1.1 million and $969 thousand, respectively. Noninterest expense totaled $15.8 million in the second quarter of 2019, an increase of 68.7% from $9.4 million in the prior year period. This increase was primarily driven by increased salaries and employee benefits and the amortization of core deposit intangibles related to the Comanche acquisition and the Beeville acquisition.

The efficiency ratio was 67.3% in the second quarter of 2019 compared to 70.1% in the second quarter of 2018.

(1)

Adjusted Net Income, Adjusted Basic and Diluted Earnings Per Share, Tax Equivalent Net Interest Margin, Tangible Book Value Per Share, and Tangible Equity to Tangible Assets Ratio are all non-GAAP measures. Spirit believes that for Adjusted Net Income and Adjusted Basic and Diluted Earnings Per Share, the adjustments made to net income allow investors and analysts to better assess its basic and diluted earnings per common share by removing the volatility that is associated with merger-related expenses and gain on sale of investment securities that are unrelated to its core business. In Spirit's judgment, regarding Tax Equivalent Net Interest Margin, the fully tax equivalent basis is the preferred industry measurement basis for net interest margin and that it enhances comparability of net interest income arising from taxable and tax-exempt sources. Regarding Tangible Book Value Per Share and Tangible Equity To Tangible Assets, Spirit believes that that these measures are important to many investors in the marketplace who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing total book value while not increasing its tangible book value. The non-GAAP financial measures that we discuss in this news release should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we discuss in this news release may differ from that of other banking organizations reporting measures with similar names. You should understand how such other banking organizations calculate their financial measures similar or with names similar to the non-GAAP financial measures we have discussed in this news release when comparing such non-GAAP financial measures. Please see a reconciliation to the nearest respective GAAP measures at the end of this news release.

Conference Call

Spirit of Texas Bancshares has scheduled a conference call to discuss its second quarter 2019 results and its pending acquisition of Citizens, which will be broadcast live over the Internet, on Thursday, July 25, 2019 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time. To participate in the call, dial 201-389-0867 and ask for the Spirit of Texas call at least 10 minutes prior to the start time, or access it live over the Internet at http://ir.sotb.com/events-presentations. For those who cannot listen to the live call, a replay will be available through August 1, 2019 and may be accessed by dialing 201-612-7415 and using pass code 13692563#. Also, an archive of the webcast will be available shortly after the call at http://ir.sotb.com/events-presentations for 90 days.

About Spirit of Texas Bancshares, Inc.

Spirit, through its wholly-owned subsidiary, Spirit of Texas Bank, provides a wide range of relationship-driven commercial banking products and services tailored to meet the needs of businesses, professionals and individuals. Spirit of Texas Bank has 29 locations in the Houston, Dallas/Fort Worth, Bryan/College Station, San Antonio-New Braunfels and Corpus Christi metropolitan areas, along with offices in North Central Texas. Please visit https://www.sotb.com for more information.

No Offer or Solicitation

This press release does not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation or an offer to buy any securities. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirement of Section 10 of the Securities Act of 1933, as amended (the "Securities Act").

Forward Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act. Any statements about our expectations, beliefs, plans, predictions, protections, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Forward-looking statements are typically, but not exclusively, identified by the use of forward-looking terminology such as "believes," "expects," "could," "may," "will, "should," "seeks," "likely," "intends" "plans," "pro forma," "projects," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: our ability to consummate the equity offering in the size and manner described herein; risks relating to our ability to timely complete, or complete at all, the pending acquisition of Citizens, including the possibility that the expected benefits and synergies and our projections related to the acquisitions may not materialize as expected; that prior to the completion of the pending acquisition of Citizens, the target's businesses could experience disruptions due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with employees, customers, other business partners or governmental entities; difficulty retaining key employees; business and economic conditions generally and in the bank and non-bank financial services industries, nationally and within our local market areas; our ability to mitigate our risk exposures; our ability to maintain our historical earnings trends; risks related to the integration of acquired businesses (including our recent Beeville acquisition and our pending acquisition of Citizens) and any future acquisitions; our ability to successfully identify and address the risks associated with our recent, pending and possible future acquisitions; changes in management personnel; interest rate risk; credit risk associated with our loan portfolio; deteriorating asset quality and higher loan charge-offs; time and effort necessary to resolve nonperforming assets; inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates and projections; lack of liquidity; fluctuations in the fair value and liquidity of the securities we hold for sale; impairment of investment securities, goodwill, other intangible assets or deferred tax assets; our risk management strategies; increased competition in the bank and non-bank financial services industries, nationally, regionally or locally, which may adversely affect pricing and terms; the accuracy of our financial statements and related disclosures and those of companies we acquire; our actual financial results for the three months ended June 30, 2019 may differ materially from the preliminary financial estimates we have provided as a result of the completion of our financial closing procedures, final adjustments and other developments arising between now and the time that our financial results for such periods are finalized; material weaknesses in our internal control over financial reporting; system failures or failures to prevent breaches of our network security; the institution and outcome of litigation and other legal proceedings against us or to which we become subject; changes in federal tax law or policy; the impact of recent and future legislative and regulatory changes, including changes in banking, securities and tax laws and regulations, and their application by our regulators; governmental monetary and fiscal policies; increases in our capital requirements; and other risks identified in Spirit's Annual Report on Form 10-K for the year ended December 31, 2018, filed with the U.S. Securities and Exchange Commission (the "SEC") on March 15, 2019, its Quarterly Report on Form 10-Q for the period ended March 31, 2019, filed with the SEC on May 10, 2019, and its other filings with the SEC.

While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Income

(Unaudited)

For the Three Months Ended

June 30, 2019

March 31, 2019

December 31, 2018

September 30, 2018

June 30, 2018

(Dollars in thousands, except per share data)

Interest income:

Interest and fees on loans

$ 22,204

$ 17,118

$ 15,817

$ 13,901

$ 13,078

Interest and dividends on investment securities

1,302

1,182

897

202

195

Other interest income

794

584

208

173

215

Total interest income

24,300

18,884

16,922

14,276

13,488

Interest expense:

Interest on deposits

3,938

3,071

2,613

2,197

1,941

Interest on FHLB advances and other borrowings

611

378

447

389

465

Total interest expense

4,549

3,449

3,060

2,586

2,406

Net interest income

19,751

15,435

13,862

11,690

11,082

Provision for loan losses

332

849

700

486

635

Net interest income after provision for loan losses

19,419

14,586

13,162

11,204

10,447

Noninterest income:

Service charges and fees

969

729

649

462

419

SBA loan servicing fees

40

264

1,026

529

548

Mortgage referral fees

198

110

97

160

208

Gain on sales of loans, net

1,384

804

1,236

1,369

1,041

Gain on sales of investment securities

1,053

1,081

-

-

-

Other noninterest income

131

69

23

47

87

Total noninterest income

3,775

3,057

3,031

2,567

2,303

Noninterest expense:

Salaries and employee benefits

8,765

7,124

7,988

6,623

6,043

Occupancy and equipment expenses

1,690

1,262

1,479

1,279

1,221

Professional services

1,022

1,041

1,806

624

314

Data processing and network

731

485

340

302

321

Regulatory assessments and insurance

315

98

307

266

266

Amortization of intangibles

1,006

603

390

176

175

Advertising

167

97

81

83

102

Marketing

132

139

154

115

121

Telephone expense

338

140

82

120

114

Conversion expense

453

1,151

160

-

-

Other operating expenses

1,206

864

789

693

704

Total noninterest expense

15,825

13,004

13,576

10,281

9,381

Income before income tax expense

7,369

4,639

2,617

3,490

3,369

Income tax expense

1,542

829

104

719

688

Net income

$ 5,827

$ 3,810

$ 2,513

$ 2,771

$ 2,681

Earnings per common share:

Basic

$ 0.42

$ 0.31

$ 0.23

$ 0.28

$ 0.30

Diluted

$ 0.41

$ 0.30

$ 0.22

$ 0.27

$ 0.29

Weighted average common shares outstanding:

Basic

13,765,929

12,152,558

10,994,467

9,792,032

8,851,446

Diluted

14,236,244

12,607,445

11,450,552

10,360,301

9,306,029

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Consolidated Balance Sheets

(Unaudited)

As of

June 30, 2019

March 31, 2019

December 31, 2018

September 30, 2018

June 30, 2018

(Dollars in thousands)

Assets:

Cash and due from banks

$ 26,150

$ 19,397

$ 22,664

$ 18,212

$ 17,181

Interest-bearing deposits in other banks

137,008

103,265

66,351

25,926

35,805

Total cash and cash equivalents

163,158

122,662

89,015

44,138

52,986

Time deposits in other banks

1,225

-

-

245

245

Investment securities:

Available for sale securities, at fair value

171,058

131,068

179,461

33,449

34,519

Total investment securities

171,058

131,068

179,461

33,449

34,519

Loans held for sale

2,583

6,300

3,945

5,500

7,715

Loans:

Loans held for investment

1,409,338

1,115,995

1,092,940

954,074

917,521

Less: allowance for loan and lease losses

(6,277)

(6,569)

(6,286)

(6,156)

(6,015)

Loans, net

1,403,061

1,109,426

1,086,654

947,918

911,506

Premises and equipment, net

62,815

55,237

53,877

46,135

44,945

Accrued interest receivable

7,039

4,849

4,934

3,715

3,195

Other real estate owned and repossessed assets

1,324

518

782

289

289

Goodwill

43,889

18,253

18,253

4,485

4,485

Core deposit intangible

12,583

7,954

8,558

2,959

3,135

SBA servicing asset

3,570

3,747

3,965

3,561

3,521

Deferred tax asset, net

48

-

328

1,667

1,616

Bank-owned life insurance

15,432

7,442

7,401

483

482

Federal Home Loan Bank and other bank stock, at cost

6,190

5,264

5,304

4,861

4,830

Other assets

4,485

4,464

4,276

2,806

3,207

Total assets

$ 1,898,460

$ 1,477,184

$ 1,466,753

$ 1,102,211

$ 1,076,676

Liabilities and Stockholders' Equity

Liabilities:

Deposits:

Transaction accounts:

Noninterest-bearing

$ 367,892

$ 258,440

$ 256,784

$ 207,727

$ 183,618

Interest-bearing

569,839

363,326

378,822

222,245

220,087

Total transaction accounts

937,731

621,766

635,606

429,972

403,705

Time deposits

632,873

581,486

547,042

442,638

440,978

Total deposits

1,570,604

1,203,252

1,182,648

872,610

844,683

Accrued interest payable

1,134

737

702

475

431

Short-term borrowings

-

-

12,500

10,000

15,000

Long-term borrowings

80,525

65,676

67,916

64,961

66,191

Deferred tax liability, net

-

449

-

-

-

Other liabilities

2,087

3,094

4,191

3,272

2,385

Total liabilities

1,654,350

1,273,208

1,267,957

951,318

928,690

Stockholders' Equity:

Common stock

204,974

171,159

169,939

127,541

127,344

Retained earnings

36,640

30,813

27,003

24,490

21,719

Accumulated other comprehensive income (loss)

2,496

2,004

1,854

(1,138)

(1,077)

Total stockholders' equity

244,110

203,976

198,796

150,893

147,986

Total liabilities and stockholders' equity

$ 1,898,460

$ 1,477,184

$ 1,466,753

$ 1,102,211

$ 1,076,676

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Loan Composition

(Unaudited)

As of

June 30, 2019

March 31, 2019

December 31, 2018

September 30, 2018

June 30, 2018

(Dollars in thousands)

Loans:

Commercial and industrial loans (1)

$ 197,774

$ 162,934

$ 173,892

$ 159,776

$ 149,988

Real estate:

1-4 single family residential loans

277,560

280,788

275,644

244,633

238,606

Construction, land and development loans

176,567

169,919

159,734

155,778

152,558

Commercial real estate loans (including multifamily)

666,981

418,032

397,953

324,212

305,405

Consumer loans and leases

20,745

21,631

24,378

18,174

19,588

Municipal and other loans

69,711

62,691

61,339

51,501

51,376

Total loans held in portfolio

$ 1,409,338

$ 1,115,995

$ 1,092,940

$ 954,074

$ 917,521

(1)

Balance includes $71.3 million, $73.5 million, $76.9 million, $75.9 million and $72.4 million of the unguaranteed portion of SBA loans as of June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018, respectively.

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Deposit Composition

(Unaudited)

As of

June 30, 2019

March 31, 2019

December 31, 2018

September 30, 2018

June 30, 2018

(Dollars in thousands)

Deposits:

Noninterest-bearing demand deposits

$ 367,892

$ 258,440

$ 256,784

$ 207,727

$ 183,618

Interest-bearing demand deposits

292,550

127,182

124,933

-

-

Interest-bearing NOW accounts

7,638

7,509

7,961

7,865

7,404

Savings and money market accounts

269,651

228,635

245,928

214,380

212,683

Time deposits

632,873

581,486

547,042

442,638

440,978

Total deposits

$ 1,570,604

$ 1,203,252

$ 1,182,648

$ 872,610

$ 844,683

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Average Balances and Yields

(Unaudited)

Three Months Ended June 30,

2019

2018

Average Balance (1)

Interest/ Expense

Annualized Yield/Rate

Average Balance (1)

Interest/ Expense

Annualized Yield/Rate

(Dollars in thousands)

Interest-earning assets:

Interest-earning deposits in other banks

$ 120,568

$ 742

2.47%

$ 41,396

$ 183

1.77%

Loans, including loans held for sale (2)

1,419,004

22,204

6.28%

901,103

13,078

5.82%

Investment securities and other

177,227

1,354

3.06%

40,005

227

2.28%

Total interest-earning assets

1,716,799

24,300

5.68%

982,504

13,488

5.51%

Noninterest-earning assets

143,434

75,278

Total assets

$ 1,860,233

$ 1,057,782

Interest-bearing liabilities:

Interest-bearing demand deposits

$ 295,274

$ 394

0.54%

$ -

$ -

0.00%

Interest-bearing NOW accounts

7,619

3

0.16%

8,102

3

0.15%

Savings and money market accounts

267,357

588

0.88%

221,792

337

0.61%

Time deposits

634,700

2,953

1.87%

431,666

1,601

1.49%

FHLB advances and other borrowings

75,856

611

3.23%

85,612

465

2.18%

Total interest-bearing liabilities

1,280,806

4,549

1.42%

747,172

2,406

1.29%

Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits

359,559

188,628

Other liabilities

3,228

2,855

Stockholders' equity

216,640

119,127

Total liabilities and stockholders' equity

$ 1,860,233

$ 1,057,782

Net interest rate spread

4.26%

4.22%

Net interest income and margin

$ 19,751

4.61%

$ 11,082

4.52%

Net interest income and margin (tax equivalent)(3)

$ 19,863

4.64%

$ 11,196

4.57%

(1)

Average balances presented are derived from daily average balances.

(2)

Includes loans on nonaccrual status.

(3)

In order to make pretax income and resultant yields on tax-exempt loans comparable to those on taxable loans, a tax-equivalent adjustment has been computed using a federal tax rate of 21% for the three months ended June 30, 2019 and 2018, respectively.

SPIRIT OF TEXAS BANCSHARES, INC. AND SUBSIDIARY

Average Balances and Yields

(Unaudited)

Three Months Ended

June 30, 2019

March 31, 2019

Average Balance (1)

Interest/ Expense

Annualized Yield/Rate

Average Balance (1)

Interest/ Expense

Annualized Yield/Rate

(Dollars in thousands)

Interest-earning assets:

Interest-earning deposits in other banks

$ 120,568

$ 742

2.47%

$ 92,892

$ 546

2.38%

Loans, including loans held for sale (2)

1,419,004

22,204

6.28%

1,105,177

17,118

6.28%

Investment securities and other

177,227

1,354

3.06%

148,035

1,220

3.34%

Total interest-earning assets

1,716,799

24,300

5.68%

1,346,104

18,884

5.69%

Noninterest-earning assets

143,434

110,334

Total assets

$ 1,860,233

$ 1,456,438

Interest-bearing liabilities:

Interest-bearing demand deposits

$ 295,274

$ 394

0.54%

$ 128,059

$ 167

0.53%

Interest-bearing NOW accounts

7,619

3

0.16%

7,354

3

0.15%

Savings and money market accounts

267,357

588

0.88%

235,148

442

0.76%

Time deposits

634,700

2,953

1.87%

561,435

2,459

1.78%

FHLB advances and other borrowings

75,856

611

3.23%

67,149

378

2.29%

Total interest-bearing liabilities

1,280,806

4,549

1.42%

999,145

3,449

1.40%

Noninterest-bearing liabilities and

shareholders' equity:

Noninterest-bearing demand deposits

359,559

250,204

Other liabilities

3,228

5,232

Stockholders' equity

216,640

201,857

Total liabilities and stockholders' equity

$ 1,860,233

$ 1,456,438

Net interest rate spread

4.26%

4.29%

Net interest income and margin

$ 19,751

4.61%

$ 15,435

4.65%

Net interest income and margin (tax equivalent)(3)

$ 19,863

4.64%

$ 15,573

4.69%

(1)

Average balances presented are derived from daily average balances.

(2)

Includes loans on nonaccrual status.

(3)

In order to make pretax income and resultant yields on tax-exempt loans comparable to those on taxable loans, a tax-equivalent adjustment has been computed using a federal tax rate of 21% for the three months ended June 30, 2019 and March 31, 2019, respectively.